BACKGROUND

GPT Arlington Heights Owner LLC is requesting Village approval for a Cook County Class 6b Property Tax Classification Renewal relative to 600 E. Brook Drive, consisting of one parcel of property.  The site is occupied by one tenant, European Imports, which moved to the property in April 2014.  In order to be able to retain this business and help it grow its employment base, a Class 6b renewal for the property is being requested.  The Village's guidelines for Class 6b applicants are based upon employing at least 25 workers, showing financial benefit to the Village, and a commitment to providing 10% of their property tax savings over the first five years towards the Zero Interest Loan program.

European Imports employs 148 full-time workers today, and plans to grow to as many as 233 full-time employees during the life of the incentive. This greatly exceeds the Village’s employment requirement. The applicant also expects to have a positive financial impact on the Village. Both current and future Staff will provide direct and indirect spending to Village businesses. Furthermore, the amount of property tax revenue gained from retaining the businesses with a Class 6b designation, as opposed to allowing the site to become vacant, is estimated at nearly $675,000 over the 12-year life of the abatement. The applicant has signed an agreement to provide the Village with 10% of their property tax savings over the first five years of the abatement, in order to help fund the Zero Interest Loan program.

European Imports has invested in Arlington Heights and is a significant employer with plans to grow its worker base substantially in the near future. The Class 6b incentive would allow for continued occupancy of a 119,000 square foot industrial facility, while allowing the business to grow in order to create additional employment opportunities.  A detailed summary of the request by GPT Arlington Heights Owner LLC for a Cook County Class 6b incentive is attached.

RECOMMENDATION

It is recommended that the Village Board of Trustees approve the Resolution Approving Renewal of Industrial Real Estate Tax Incentive for Certain Real Estate in the Village of Arlington Heights, Cook County, Illinois for the property located at 600 E. Brook Drive.